The reality of attorney malpractice insurance policies is paying the deductible when a claim is made against the law firm. For an additional premium Insurers may offer for 1st dollar defense which addresses claims expenses for claims with no indemnity payment made or an aggregate deductible for multiple claims brought in any one policy year. But insurers may also have features built into their policies that reduce your deductible obligation. Valuable policy features mean that there is more than policy premiums that should be compared prior to making an insurer coverage decision. As every law firm is unique, policy features important to one insured are not important to another insured.
Deductible reducing features with the AmGuard policy are:
II. SECTION II – LIMIT OF LIABILITY AND DEDUCTIBLE
B. Deductible
The deductible amount shown in the Declarations shall apply to all Damages and Claim Expenses for each and every Claim. The deductible is included within the limit of liability. The deductible shall be applied first to Claim Expenses with any remainder applied to Damages. The Company’s obligation to pay is in excess of the deductible. The Named Insured shall pay the deductible within thirty (30) days of demand by the Company.
E. Alternative Dispute Resolution
In the event the Insured participated in an Alternative Dispute Resolution to settle a Claim brought by a client of the firm, the Company will waive 50% of the Insured’s deductible obligation. The maximum amount of this waiver shall not exceed $25,000 per Claim. If the Alternative Dispute Resolution fails to resolve the Claim, and the Claim proceeds to litigation, the deductible will apply to any Damages and/or Claim Expenses paid by the Company after the litigation has commenced.
SECTION VI – DEFINITIONS
W. ALTERNATIVE DISPUTE RESOLUTION
means the use of arbitration or mediation.
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This blog is an excerpt from the policy. The complete policy along with applicable endorsements could impact the information provided above.
Lee Norcross, MBA, CPCU
Managing Director, CEO
(616) 940-1101 Ext. 7080